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Why the gold price won’t crash IF the Fed raises rates
truthingold.com / October 1, 2015
After a difficult few days of trading, gold is continuing to drift back from its recent brief rally that was sparked by the Fed’s decision not to raise interest rates.
The precious metal has fallen by around three per cent this year on the back of mounting speculation that interest rates might begin to rise. As rates rise income-generating assets start to look more attractive relative to non-yielding commodities, this should trigger a surge in the dollar, against which gold is often used as a hedge.
With Federal Reserve chairman Janet Yellen and her colleagues at pains to stress that the hold on rates earlier this month was temporary and that a first rise is expected this year, the bounce in gold brought on by the decision not to tighten policy two weeks’ ago has proved to be a shallow one.
The post Why the gold price won’t crash IF the Fed raises rates appeared first on Silver For The People.
Source: http://silveristhenew.com/2015/10/01/why-the-gold-price-wont-crash-if-the-fed-raises-rates/
